It’s hard to imagine a world where we couldn’t use our phones to buy things, but it wasn’t always so. In fact, until recently, people relied on cash or credit cards. Several new options exist for paying for things – including mobile payments and digital wallets. Which one is right for you?
Card – Debit, Prepaid and Credit Cards
Credit Cards: A credit card is a form of payment that allows you to make purchases on credit. The money to pay for these purchases comes from the bank or financial institution that issues the card.
Debit Card: A debit card allows you to spend money directly from your bank account, with restrictions such as maximum daily/weekly limits, and must be linked to your checking or savings account(s).
Prepaid Cards: They are like debit cards, but without a bank account — instead of drawing funds directly from an existing checking or savings account. Prepaid cards draw funds from a pool of funds held in trust by the issuer until they are spent by the customer (or withdrawn at ATMs).
Money Orders
The post office is one of the most popular places to purchase money orders. If you’re in a hurry, this can be a great option. However, it’s important to note that not all post offices offer money order services—so make sure to call ahead if you want to use this method.
Money orders can also be purchased at certain grocery stores and retail outlets like Walmart or Target, and purchasing money orders with credit card is also possible. The process is similar to buying postage stamps at the post office: You hand over cash and fill out an application form with your name and address.
“Money orders are popular because they have several advantages. First, a money order is traceable, unlike cash. Money orders are also replaceable.” explains Lantern by SoFi experts.
Online Transfers and Mobile Wallets
Online transfers and mobile wallets are easy, convenient and secure. They’re also backed by a financial institution, which means they offer protection from fraud and theft. But these payment modes aren’t necessarily safer than cash or credit cards — you should still be careful about where you use them!
Gift cards and coupons
- Coupons are a great way to save money on the things you buy regularly, and there are numerous ways to use them. You can save anywhere from 10 percent to 100% of the cost of your purchase with coupons. While some coupons may be for larger discounts or free products, others offer smaller amounts of one item.
- There are different types of coupons: manufacturer coupons, store coupons and online coupons. Manufacturer coupons usually come in direct mailings that offer discounts on specific products or brands. Store-specific offers can be found in newspapers, while those available online can be found through popular sites.
Most people paying for things has come a long way in recent years. There are many different ways to pay for goods and services, all of which have pros and cons. So the key is knowing which will work best for you so your business can grow!
